Future Market Insights (FMI), in its recent report titled, “N-Methyl-2-Pyrrolidone (NMP) Market: Global Industry Analysis & Opportunity Assessment, 2014 - 2020”, forecasts that the global N-Methyl-2-Pyrrolidone market will witness a steady CAGR of 4.7% between 2015 and 2020. NMP accounted for around US$ 660 Mn of the US$ 3.2 trillion generated by the global chemicals market in 2013, and FMI estimates it to reach a valuation of US$ 985 Mn by 2020.

N-Methyl-2-Pyrrolidone, also referred to as N-Methylpyrrolidone, is an organic, colourless, polar aprotic solvent characterised by relatively lower volatility and higher flash point. It is obtained through the process of condensation of gamma butyrolactone and monomethylamine. Owing to such properties, NMP is used across diverse industries in a wide range of end-uses.

FMI’s latest report analyses the global NMP market in terms of market value (US$ Mn) and volume (‘000 tonne) by segmenting the market on the basis of applications and regions. The report offers insights and data related to prevalent trends, and impact analysis of the various drivers and restraints in the market. It also provides detailed information and statistics of some of the leading players in the industry in the form of company profiles.

Growth in the end-use industry is expected to emerge as the primary factor driving growth of the global NMP market during the forecast period. Moreover, growing demand from developing countries across the globe, especially those in Asia Pacific, is expected to fuel growth of the global NMP market between 2015 and 2020. However, NMP has been listed as a developmental and reproductive toxin by regulatory bodies across the globe, particularly in Europe and North America. As such, application of NMP in paints & coatings and industrial cleaners segments is expected to be adversely affected in the near future, especially in markets in Europe and North America. This is likely to result in slower growth rates of the abovementioned segments in the global NMP market over the forecast period.

On the basis of regions, the global NMP market has been segmented into North America, Europe, Asia Pacific, Middle East & Africa and South America. By application, the market has been segmented into electronics, petrochemical processing, pharmaceuticals, agrochemicals, paints & coatings and industrial cleaners and others.

Asia Pacific accounts for highest share in terms of revenue contribution, owing to industrial growth in the region, and this trend is expected to continue over the forecast period. The region is anticipated to register a CAGR of 7.5% in terms of market value, thus dominating the global NMP market over the forecast period. However, mature markets such as North America and Europe are slated to witness relatively slower growths in terms of NMP consumption during the forecast period.

On the basis of application, the electronics segment is expected to account for majority as compared to other application-based segments, and will register a steady CAGR of 6.7% during the forecast period. However, the other major application segments such as petrochemical processing, pharmaceuticals and agrochemicals are also expected to register steady year-on-year growth rates during the forecast period.